Correlation Between Baillie Gifford and Mfs Research
Can any of the company-specific risk be diversified away by investing in both Baillie Gifford and Mfs Research at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Baillie Gifford and Mfs Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baillie Gifford Health and Mfs Research Fund, you can compare the effects of market volatilities on Baillie Gifford and Mfs Research and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Baillie Gifford with a short position of Mfs Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baillie Gifford and Mfs Research.
Diversification Opportunities for Baillie Gifford and Mfs Research
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Baillie and Mfs is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Baillie Gifford Health and Mfs Research Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Research and Baillie Gifford is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Baillie Gifford Health are associated (or correlated) with Mfs Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Research has no effect on the direction of Baillie Gifford i.e., Baillie Gifford and Mfs Research go up and down completely randomly.
Pair Corralation between Baillie Gifford and Mfs Research
If you would invest 5,833 in Mfs Research Fund on October 23, 2024 and sell it today you would earn a total of 53.00 from holding Mfs Research Fund or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baillie Gifford Health vs. Mfs Research Fund
Performance |
| Timeline |
| Baillie Gifford Health |
| Mfs Research |
Baillie Gifford and Mfs Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baillie Gifford and Mfs Research
The main advantage of trading using opposite Baillie Gifford and Mfs Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baillie Gifford position performs unexpectedly, Mfs Research can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Mfs Research will offset losses from the drop in Mfs Research's long position.| Baillie Gifford vs. Ashmore Emerging Markets | Baillie Gifford vs. Aqr Sustainable Long Short | Baillie Gifford vs. Vanguard Emerging Markets | Baillie Gifford vs. Locorr Market Trend |
| Mfs Research vs. Mfs Growth Fund | Mfs Research vs. Massachusetts Investors Trust | Mfs Research vs. Mfs Total Return | Mfs Research vs. Massachusetts Investors Growth |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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